When Dereck Lane came to work as public relations manager for the Woodland Hills office of Dassault Systemes Inc., he was hoping he’d get the European employee package a shorter work week, extra vacation time and fully paid health care coverage.

But the U.S. headquarters of this French-based company operates on the American benefits system.

“I was excited because I thought I would get European vacation time, but that was not the case,” Lane said.

The company, which provides software applications and services in the product lifecycle management market, has 146 offices in 27 countries. Melding American and European benefit packages and workplace cultures is an increasingly common challenge for businesses in today’s global economy, and it can be a challenge for workers, too.

Most European governments are more aggressive than the United States in terms of social activism and have legislation in place intended to help people balance work and family. For example, France requires that employees work no more than 35 hours per week. Germany has established 30 days of vacation time each year as a minimum and up to 14 weeks of fully paid maternity leave. Sweden pays employees at least 80 percent of their salary for sick leave indefinitely.

“In Europe there is a significant tradition of state supported safety nets, including health care and other benefits, and the quality of the work/life balance orients itself to that context,” said John Boudreau, professor of management and organization at USC’s Marshall School of Business. “In the United States, on the other hand, employee benefits continue to be at the discretion of the individual companies.”

Cultural differences also come into play.

“It all comes down to values,” said Richard Polak, president and chief executive of Polak International Consultants Inc., an international human resources firm in Los Angeles. “Here we want to achieve more money and there they want to achieve a better lifestyle balance.”

Fahriye Mahrenholz, economic affairs assistant of the German Consulate General of Los Angeles, agreed that when comparing European and American labor policies, European employers place more value on time off.

“In Germany we think of having families as a good thing,” she said. “We make it easy for people to take time off to have kids and give them affordable day care.”

And with a new generation entering the workforce, there’s a rising sentiment that this European value of lifestyle balance over money may not be a bad direction for the American economy. Boudreau cites the myriad online and published ratings of “Best Companies To Work For” or “Most Family-Friendly Companies” as responsible for increasing the resonance of work/family balance on the corporate radar.

“Most countries have better family policies than the United States,” said Ruth Milkman, a professor of sociology at UCLA. “These policies work here when they exist, but people here worship the marketplace and don’t believe in government regulation. We need a strong political will to make a change happen.”

Production toll?


Viewed strictly on the basis of production, giving employees more time off can be costly for businesses. Data compiled by the Organization of Economic Cooperation and Development in 2004 shows that labor productivity, as measured by Gross Domestic Product per hour worked, is about 20 percent lower in the European Union than it is in the United States.

So there can be a bit of a culture clash.

Employees of Dassault’s U.S. offices communicate with their European counterparts on a daily basis and usually make several trips a year to overseas locations. Executive transfers and exchanges between the continents are common as well, so the workers are well aware of what their colleagues on the other continent are receiving in terms of benefits.

With all of the coming and going, some employees have a hard time adjusting, especially when those used to Europe’s plentiful time off relocate to Woodland Hills.

“When employees from France come to America, we have to spend a lot of time explaining the differences, like the concept of employment at will, and many are surprised by the cost of health care,” said Alicia Ferrari, director of human resources for Dassault Systemes.

That’s where firms like Polak International come in. The firm provides businesses with intracultural tools to help manage the multicultural process and increase productivity across borders. Polak stresses the importance of being aware of cultural differences and knowing how to address issues that may arise because of those differences as the key to conducting global business.

The company has adopted a similar policy to avoid the trend of decreased productivity. Its efforts are paying off, suggesting that high productivity and family-friendly policies may not be incompatible. With 47 percent of its 2005 revenue coming from Europe, the company found that its European offices are just as productive as those in America.

Ferrari said that success is due to the company’s efforts to create a collaborative philosophy of management policies while complying with each country’s government regulations. Ferrari and other managerial staff in Europe and America meet several times a year to talk about their approaches and create a set of goals and expectations.

Both Ferrari and Lane agree that these unified policies create a unified workforce. Although statistics may show otherwise, they’ve found that general work commitment and productivity are the same in the European and American offices even though workweeks are officially shorter and vacations are longer overseas.

In other words, Europeans inclined to do so will work every bit as hard and long as their American counterparts.

“My boss who is in the French office doesn’t just clock out after her 35 hours each week,” Lane said. “I get e-mails from her at all hours and even during the weekends. People everywhere do what they have to do to get the job done.”